After-tax cost of debt
After-tax cost of debt, rd(12T) is the relevant cost of new debt, taking into account the tax deductibility of interest; used to calculate the WACC.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- After-tax cost of debt, rd(12T). The relevant cost of new debt, taking into account the tax deductibility of interest; used to calculate the WACC.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
